“This is an inspired decision,” he said. “In backing tax relief the Government has chosen the future over the past, growth over decline, success over failure.”

He said tax relief will “increase employment, investment and innovation in the UK video games sector.”

Mark Gerhard, CEO of Jagex went on to say the move meant the UK games industry “is set for further growth and innovation.”

Realtime Worlds studio manager Colin Macdonald said today is a great day for British developers.

“UK video games industry is one of the most creative and innovative in the world. This decision will mean we can continue to invest in UK talent and prevent brain drain to our overseas competitors. This is a great day for Scottish and UK-wide developers.”